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Coinbase lists Dogecoin, Bitcoin Cash and Litecoin futures

Coinbase Derivatives has revealed plans to offer cash-settled futures contracts for Dogecoin, Litecoin, and Bitcoin Cash.

The initiative was announced in letters to the US Commodity Futures Trading Commission (CFTC) on March 7. This initiative represents a significant expansion of the Coinbase product line. It is targeting an April 1 launch date.

What is a Coinbase strategy with futures included?

Stole Deposit Going unnoticed at first, it did not attract the attention of the community. At this time, the CFTC's response is still awaited. However, if no objections arise, these futures will begin. Including the Dogecoin Futures Futures ETF, traded on April 1.

Most importantly, Coinbase has chosen to self-certify under CFTC Regulation 40.2(a). This is a measure that speeds up the listing process by bypassing direct approval from the Commodity Futures Trading Commission.

As for regulatory navigation, Coinbase's acquisition of FairX, a CFTC-regulated derivatives exchange, in 2022 laid the groundwork for these developments. In August 2023, the company had already received authorization to trade regulated futures in the United States. Despite the brilliance of the SEC investigation.

Following this announcement, Dogecoin, Litecoin and Bitcoin Cash saw significant price increases, highlighting the market's receptiveness towards them. The choice to list Dogecoin futures is also a symbol of the asset's evolution from a mere meme to a major cryptocurrency asset.

And I wrote Coinbase: “Dogecoin's enduring popularity and active community support suggest that it has transcended its origins as a meme to become a staple of the cryptocurrency world. »

Dogecoin, Litecoin and Bitcoin Cash price performance
Price performance of Dogecoin, Litecoin and Bitcoin Cash. Source: Trading View

Coinbase's strategic filing with the Commodity Futures Trading Commission (CFTC), rather than the SEC, also reflects a tactical approach to regulatory engagement. Given the SEC's strict stance on cryptocurrency classifications, led by its Chairman Gary Gensler, the CFTC's relatively more flexible stance creates a paradoxical regulatory environment.

Market observers also interpret Coinbase's move as a potential strategy to influence the SEC's rulemaking process. This initiative could redefine the regulatory dialogue around crypto assets. Analysts also suggest that by obtaining a commodity futures rating for these cryptocurrencies, Coinbase is calling into question the SEC's securities rating.

Bloomberg analyst James Seyphart speculated on social media about the strategic nature of the files. He further speculated that this could be aimed at forcing the SEC to align its classification of proof-of-work cryptocurrency assets with that of Bitcoin, thereby avoiding a "securities" classification.

Read more: A look at the experiences of countries around the world Regulating digital currencies: what are its advantages and disadvantages?

"Frankly. If the SEC had engaged with the industry to set rules on these things, we wouldn't have these kinds of measures," he said. He said Seyfart.

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